Social Security Is One of the Topics That Legislators from Both

question 52

Multiple Choice

Social Security is one of the topics that legislators from both major political parties are rarely interested in challenging. Why is this?

• A) The topic is far too complicated to understand.
• B) Most realize that nothing would be done anyway so they are not willing to attempt any solutions.
• C) Often referred to as the "third rail," to challenge Social Security in its current form is often politically fatal.
• D) The current system works well.
• E) The Social Security administration is the largest contributor to political campaigns in the United States.

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Definitions:

Sales Discounts

Reductions in the price of goods sold, offered to customers as an incentive to either prompt payment or increase sales volume.

Vouchers Payable

Liabilities or debts owed by a company for purchases made on credit, documented by vouchers.

Gross Method

An accounting practice where purchases are recorded at their full invoice amount without deducting any purchase discounts.

Periodic Method

An accounting approach used to value inventory and determine the cost of goods sold in which physical counts are done periodically, typically at the end of an accounting period.